Centre releases ₹4,597 crore additional tax devolution to Andhra Pradesh; CM Naidu expresses gratitude

Andhra Pradesh Chief Minister N. Chandrababu Naidu on Sunday thanked Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman for the Centre's allocation of an additional ₹4,597 crore to the State as part of tax devolution. The Chief Minister said the funds would help accelerate infrastructure projects and welfare initiatives across the State.

In a message on social media platform X, Mr. Naidu noted that the additional amount, along with the State's regular monthly share of Central taxes—typically released on the 10th of every month—would significantly boost the implementation of development programmes. He emphasised that the timely release of funds would enable the government to expedite ongoing projects and strengthen efforts toward long-term development goals.

The Chief Minister also acknowledged the Centre's continued cooperation in supporting the State's progress and economic growth. He said the Centre's support had consistently contributed to Andhra Pradesh's overall advancement and would further strengthen its development trajectory in the coming years.

Tax devolution is the sharing of Union tax revenues with States, as recommended by the Finance Commission. The additional release is part of the Centre's efforts to help States manage their financial requirements during the fiscal year. While the State's regular share is released monthly, additional instalments are sometimes provided based on revenue trends and specific needs.

Andhra Pradesh has been seeking enhanced financial support from the Centre since the state's bifurcation in 2014, citing revenue gaps and the need to build a new capital city. The State government has repeatedly raised concerns over delayed allocations and has urged the Centre to fulfil its commitments under the Andhra Pradesh Reorganisation Act.

The latest allocation is expected to provide some relief to the State's finances, which have faced pressure from welfare spending and infrastructure demands. Officials indicated that the funds would be directed toward priority sectors, including irrigation, roads, and social welfare programmes.